India

Real Estate
Now, Next, Beyond ...
Index
1. 6.
Executive Summary Retail

2. 7.
Investments Warehousing

3. 8.
Residential PropTech in India

4. 9.
Commercial Policy Overview

5. 10.
Data Centres Future Outlook

01
1. Executive Summary
The Real Estate sector will become USD 500 billion plus sales-up from just 6% in 2019. The luxury housing sector is
in size in 2025 contributing more than 7% in GDP to seeing impressive growth highlighted by DLF’s $4 billion
the Indian economy. The sector growth is coming from ultra-luxury project near New Delhi, where 173 of 420
incremental gains across investments in real estate units-priced at $8 million each-have already been sold.
across all asset classes, consumption and tech enabled With future urbanization trends, a pressing need to address
institutionalisation of the sector. the demand for 230 million housing units by 2047 is a key
challenge that the industry is aiming to solve. This opens up
In 2024, India real estate received USD 8.9 billion in
immense opportunities for technology’s role in the
institutional investments, a 51% increase from 2023.
scalability of construction, distribution, and monetisation of
Between 2020 and 2024, India received USD 28 billion in
real estate.
institutional investments at an average of USD 5.6 billion,
with FIIs contributing more than 55% of the investment Meanwhile, the office market is witnessing record leasing
size, demonstrating increased investor confidence in India's activity, with gross absorption reaching 71.9 mn. sq. ft. in
political maturity, its regulatory bodies, demographic 2024. Increased demand from IT, BFSI, engineering, and
dividend potential, and the scope for consumerism. India’s manufacturing sectors, along with a steady return to
strong economic growth amid geopolitical challenges workplaces, has driven vacancy rates to their lowest in 14
continues to attract both foreign and domestic investors. quarters, down by 17%.
The rise of work-from-office policies and the expanding
Retail activity is strong as well, with consumer spending
office market are expected to further boost investor
reaching $1.29 trillion in 2024. Leasing in malls expected
confidence, setting a promising tone for the remainder of
to hit 6.5 - 7 mn. sq. ft. by year-end, as malls turn into hubs
the year and beyond.
with entertainment and community spaces. The retail real
estate market is thriving, with 41 mn. sq. ft. of new
Urbanisation and migration to cities continues to fuel the
developments expected by 2028, fuelled by rising
residential real estate sector. Approximately 3.7 lakh new
consumer spending and strong leasing activity in sectors
residential units were launched in 2024. There were 3.5
like fashion, food, and entertainment.
lakh residential units sold during the period. India has now
witnessed 14 lakh houses in new launches and 13.6 lakh The data centre industry is expanding rapidly, with a 66%
houses in residential sales between 2020 to 2024. The capacity increase expected by 2026. The warehousing
mid-and high-end housing markets have led the expansion, sector is also growing, driven by e-commerce, with its value
with premium housing now comprising 15% of total projected to double by 2032.

02
2. Investments

India Real Estate,

a Growing Hub
for Investments.
India real estate attracted USD 8.9 billion
in 2024 from investors, a 65% YoY rise
from the year 2023.

India’s real estate market is going through a surge in investments from a diverse array of capital allocators, including family
offices, banks, private equity firms and sovereign wealth funds. In 2024, foreign investors continued to dominate, contributing
51% of the total capital inflows. Domestic investments also saw a remarkable increase, growing by 27% compared to the previous
year, focused on residential, office and alternative asset class.

Over the past two years, a significant shift has occurred in the demand for capital. Sectors like credit, special situations, and asset
reconstruction have shown strong performance, boosting investor confidence. As these areas continue to improve, they are
expected to attract even more investments in the near future, signalling a positive outlook for India’s real estate market.

Institutional investment in India Real Estate (USD bn.)

$8.9bn

$6.3bn
$5.7bn $5.4bn
$4.9bn
$4.8bn

$4.0bn
Investments

2018 2019 2020 2021 2022 2023 2024

Years

03
The institutional flow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary
books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs and sovereign wealth funds.
Tier I cities continue to remain key investment destinations. Alternative asset classes, driven by changing consumer
preferences and intiatives like ‘Make in India’ have demonstrated consistent growth in the influx of capital. Robust policy
making, infrastructure push, demand for urbanisation, consolidation of real estate developers, focus on ESG and tech
adoption have made India real estate an attractive theme for institutional investors.

1
%
12%

India’s attractive pricing, strong

16%
valuations, and higher yields make it
56% a top choice for institutional
investments in the APAC region, with
an annual average of USD 5.6 billion
15% over the past 5 years.
Office
Residential
Industrial
Alternatives

Others

In the last 5 years, Grade A office spaces

attracted a whopping 43% of investments!

56%

46% 45%
43%
41%

31%
28% 28%
23% 23%
18%
15% 16%
13% 12%
11%
9%
6.3%
4.2% 4%

Office Residential Industrial and Alternative

Warehousing

Investment share across asset classes 2020 2021 2022 2023 2024

04
Gross Yields
India's Real Estate Sector Expands
with Alternative Investments
Grade A offices, industrial sectors, and co-living attract major
investments, driving 9.2% CAGR.
India’s real estate landscape is evolving quickly, with low lending rates. The sector is projected to grow at a 9.2%
alternative assets in high demand. Between 2019 and 2024, CAGR, with alternative asset classes continuing to play a
Grade A office spaces have remained a top investment vital role in investments. Alternative asset class of co-living,
choice, while industrial and warehousing sectors have co-working and student housing will continue to receive the
thrived due to initiatives like "Make in India" and the highest gross yields for investors.
e-commerce boom. Investments in alternative assets, such
as shared spaces and data centres, stand at USD 2 billion
in 2024, signifying their appeal.

Top cities like Mumbai, NCR, Bangalore, Pune, and Coliving & student Residential Grade A warehouse
Hyderabad secured 53% of total investments, with Grade A housing (Fully leased)

office spaces and retail properties leading in yields. 6% to 7% 2% to 2.5% 7% to 8.5%

Alternative asset classes, including student housing and
co-living spaces, have outpaced traditional residential
real estate.

Looking ahead, the market is expected to transform with

trends like affordable housing, luxury living, and Grade A completed
office assets
Retail
(Minimum guaranteed

eco-friendly homes, supported by a stable economy and (Fully leased) rental revenue)

8% to 9% 8% to 10%

Next-Beyond
India’s real estate market is on track for significant Investments in the sector are projected to rise to USD 14.9
expansion, with projections placing its valuation at USD 1.5 billion by 2034, growing at a CAGR of 17% from 2023
trillion by 2034, contributing 10.5% to the country’s GDP. onward. By 2047, as India’s GDP is expected to reach
Key drivers of this growth include rapid urbanization, the USD 36.4 trillion, real estate investments could amount to
expansion of IT and BFSI sectors, manufacturing corridors, USD 54.3 billion, reflecting a CAGR of 9.5% over the same
and the rising digital economy, bolstered by strong period. These figures underscore the sector’s critical role in
demand, institutionalized supply chains, and improved the country’s economic growth trajectory and its appeal to
regulatory frameworks. both domestic and global investors.

05
Debt Financing
Growing Capital Allocation by
Banking Institutions
Diverse financing options and projected INR 6 lakh Crore in
debt financing highlight opportunities for lenders.

INR Crore

250,000
1,039
886
200,000 824 793 773
596
150,000

100,000

50,000
Total sanctioned debt
0 Number of loans sanctioned
2018 2019 2020 2021 2022 2023

India’s real estate sector is experiencing rapid growth, protections, making the market more efficient and reliable.
driving increased demand for financing across all stages of Over the past six years, 53% of total debt sanctioned has
development. This surge presents lucrative opportunities been in the INR 100 Crore range, reflecting a substantial
for lenders, with financing options expanding to include portion of financing needs within this segment. Loans
traditional banks, non-banking financial institutions between INR 101 - INR 200 Crore form the next largest
(NBFCs), private equity, and venture capital firms. This portion, while loans exceeding INR 500 Crore account for
variety of funding sources offers borrowers greater just 8%. This distribution highlights a broad spectrum of
flexibility and access to different capital avenues. financing requirements within the real estate market.

Recent reforms to enhance transparency have

strengthened investor confidence and improved consumer

Tier I cities secured a major share 3% 2%

of debt financing 26%
6%
City wise debt Financing 6%
10%
upto 50Cr 51-100Cr
Mumbai 40%
101-200Cr 201-300Cr
Delhi 21%
301-400Cr 401-500Cr
Bengaluru 19% 500-1000Cr >1000Cr
20%
27%
06
 The banking sector claimed
46% of total sanctions in 2023,
with private banks holding 1% Debt sanctioned based on
1% lender type during 2018-2023
a larger share than public banks.
11% Private Bank

214 218 25% HFC

180 Public sector Bank

133 Number of NBFC

24% laons
94 disbursed Fund
81
Foreign Bank
20%
Co-Operative Bank
19%
Average deal size INR Mn.

Next & Beyond

In the near-term, debt requirement in the residential opportunities. With 10% of the Grade A stock held by
segment is projected to reach INR 430,000 Crore by 2026, operational REITs and 400 mn. sq. ft. of REIT-worthy assets,
driven by substantial housing demand , with the residential along with 55% of office stock being green-rated, lenders
sector expected to maintain a 70% share of the can expect solid returns from long-term debt.
construction finance market. This presents significant
Physical retail markets are thriving, with single ownership
lending opportunities.
malls operating at over 95% occupancy levels, offering
The construction finance market, encompassing significant LRD potential. Additionally, rent-yielding assets
capital-intensive asset classes like Grade A offices, like warehousing, data centres, hotels, & co-living/student
high-quality malls, warehousing parks, and data centres, is housing present further opportunities for lenders.
poised to grow by 35%-40% over the next three years. This
The LRD potential in the commercial office segment is
translates to an additional INR 550,000 - 600,000 Crore in
expected to grow by 30% in the next three years, creating
construction debt from 2024 to 2026, nearly matching the
an incremental INR 150,000 Crore+ opportunity. The retail
total sanctioned long-term debt of the past six years.
sector is also set to expand, adding 21 mn. sq. ft., over the
Consider rephrasing to: "India's office market, driven by same period, with significant opportunities in single
strong demand fundamentals, offers substantial LRD ownership or management models.

07
Public Markets
The Nifty Realty Index has delivered
higher returns over the past five years.
Since its inception, the Nifty Realty Index Returns has
showcased an impressive 3% surge in growth for its debut year

Oberoi Realty
Hemisphere 1785.05
201.83 64904.82
Godrej Prop 5752.16 Phoenix Mills
3281.70 3754.10
91249.95 67095.17

The total market Indiabulls Real

150.35
Prestige Estate
1815.20

capitalisation of NIFTY
9546.19 72764.41

DLF Sobha

realty index stands at 832.80

206143.96 IN THE PAST 5 YEARS
2021.20
20393.88
The NIFTY REALTY INDEX
USD 84.7 bn. as of 2024 Brigade Ent
has delivered Superior returns
over other indices Sunteck Realty
1344.45 539.60
31075.05 Last Price traded Mkt Cap (Rs cr) 7904.4111

Prominent real estate IPOs in the past years

Company Name IPO Type Listing Date Issue Price Current Price Issue Size

Suraj Estate Developers

Limited IPO Mainline Dec 26, 2023 Rs. 360 Rs. 448.1 Rs. 400 Cr

Signature global
(India) Limited IPO Mainline Sep 27, 2023 Rs. 385 Rs. 1,410.6 Rs. 730 Cr

Keystone Realtors
Limited IPO Mainline Nov 24, 2022 Rs. 541 Rs. 669.6 Rs. 635 Cr

Shriram Properties
Limited IPO Mainline Dec 20, 2021 Rs. 118 Rs. 112.95 Rs. 600 Cr

Macrotech Developers
Limited IPO Mainline Apr 19, 2021 Rs. 486 Rs. 1,479.05 Rs. 2,500 Cr

Data as of 2024*

Next & Beyond

India’s Nifty Realty Index is poised for significant growth Government-backed initiatives, including tax incentives
over the next ten years, driven by rapid urbanization and and subsidies for affordable housing, are further spurring
robust economic fundamentals. The country's urban demand while boosting investor confidence.
population is projected to rise to 660 million by 2034, Financially sound developers are playing a pivotal role in
leading to a surge in housing demand that will reshape the this growth, executing large-scale projects with efficiency
real estate market. and reliability. Meanwhile, technological advancements are
The growing need for office spaces is expected to drive enhancing operational efficiency and attracting more
absorption rates in the commercial, retail, and warehousing investors. With these factors aligning, the Nifty Realty Index
sectors, contributing to higher rental incomes and pushing is poised for a decade of robust performance, signaling a
real estate stock prices upward. bright future for the sector.

08
Real Estate Investment Trust
India’s REIT are Growing Rapidly with
Strong Income Potential
REITs offer stable income through dividends, with asset
values rising, but BSE Realty Index leads in capital gains.

300
300

250
275

275

Embassy Office Mindspace Business Brookfield India Nexus Select

Parks REIT Parks REIT Real Estate Trust Trust
200
Issue Price

Issue date 5 Apr 2019 7 Aug 2020 19 Feb 2021 19 May 2023

150 YoY 16.8% 7.5 -6.8 NA

Annual yield 5.8 5.8 7.8 NA

100
Price change 22.2% 25.3% -5.5 28.8
100

since listing

Embassy Mindspace Brookfield Nexus

Office Business India Real Estate Select
Parks REIT Parks REIT Trust Trust

Real Estate Investment Trusts (REITs) in India are still in

their early stages compared to global markets, with just
four listed REITs covering approximately 125 mn. sq. ft. of Existing office supply Grade-A : 667.2 mn. sq. ft.
commercial and retail assets. Despite starting later, REITs
have shown rapid growth, boasting an Asset Under
Management (AUM) of INR 1.4 lakh crore and over 250,000
Existing additional REITable
unit holders. The share of REITs in India's listed real estate office stock : 379.5 mn. sq. ft.
portfolio is expected to increase, especially with the
introduction of SM REITs and the ongoing expansion of the
real estate market. Existing office REIT :
74.4 mn. sq. ft.
Embassy REIT, Mindspace REIT, Brookfield India REIT, and
Nexus Select Trust REIT generated returns of 24%, 18%,
6%, and 39% respectively since their inception. On the Additional REIT
office stock
other hand, BSE Realty Index has provided higher returns
under construction :
(317% in the past 66 months) compared to REITs. However, 41 mn. sq. ft.
this comparison excludes dividend distributions, which
account for a considerable portion of REITs total return.

09
REITS vs Realty Index

Embassy REIT

Mindspace REIT

Brookfield REIT

Nexus Select Trust

BSE Realty
Jan-2021

Apr-2021

Jul-2021

Oct-2021
Apr-2019

Jul-2019

Oct-2019

Jan-2022

Apr-2022

Jul-2022

Oct-2022
Jan-2020

Apr-2020

Jul-2020

Oct-2020

Jan-2023

Apr-2023

Jul-2023

Oct-2023

Jan-2024

Apr-2024

Jul-2024
According to the Indian REITs Association, REITs have distributed over INR 16,800 crore more in dividends than the entire
NIFTY Realty Index. Since 2021, REITs have distributed INR 185.68 per unit in dividends, while the 10 constituents of the BSE
Realty Index have paid out INR 86.1 per unit. This 116% difference highlights REITs as a more attractive income-generating
investment option.

REITs' gross asset value (GAV) has grown threefold since the first REIT listing, expanding at a CAGR of around 36% over the
past four years. While BSE Realty Index tracks capital appreciation across various real estate segments, REITs focus on
providing stable income through dividends with limited capital gains. The growth in stock prices of REITs has been slower,
partly because REITs are predominantly focused on the commercial sector, while the BSE Realty Index includes a broader
mix of residential, commercial, retail, hospitality, and infrastructure assets, capturing growth across multiple segments.

Dividends 2021 -2024:

70

60

50

40

30

20

10

0
Embassy Mindspace Brookfield Nexus Oberoi DLF Phoenix Sobha Mahlife Brigade Prestige Suntech Lodha Godrej Prop
REIT REIT REIT Select Realty Ltd
Trust

Next-Beyond
Indian real estate secured USD 3.0 billion in opening 32.5 mn. sq ft commercial real estate
PE investmentsin H1 2024, marking a resilient office supply across the country for institutional as well as
15% YoY growth. retail investors.

Indian Real Estate Investment Trusts (REITs) are While short-term challenges such as global recession fears
increasingly diversifying their portfolios beyond the and a slowdown in the tech sector pose obstacles, the REITs
traditional focus on office spaces. The introduction of the continue to benefit from robust regulations and enduring
first Retail REIT in May 2023 marks a significant step in this demand. The potential for policy improvements, including
expansion, with the industrial sector also exploring similar tax incentives, could further enhance investor confidence,
investment opportunities. As the country moves toward a fostering growth and diversification. With expansions into
greener future, REITs are placing a strong emphasis on logistics, data centres, hospitality, and healthcare, REITs
green certifications, aligning their strategies with India’s are embracing green buildings, setting a benchmark
ambitious 2050 net-zero goals. for environmental and market standards in India’s real
estate future.
In H1 2024, SEBI announced SM REITs, a significant move

10
3. Residential

2024 Ends with Record

High, Residential
Launches and, Strong
Demand
High demand, NRI investments, and shifting
preferences drive growth in India’s luxury
housing market.
Surge In Residential Launches Signals Market Confidence

4.0 3.5 3.7

Lakh
Lakh 3.5
3.5 3.2 3.2
Lakh
Lakh 3.1 Lakh
Lakh
3.0
2.3 2.3
2.5 Lakh Lakh

2.0
1.5
1.4 Lakh
1.5 Lakh

1.0
Launches Sales
0.5 Residential Launch And Sales (Units)

0.0
2020 2021 2022 2023 2024

New residential launches accounted for more than 3,50,000 units by the end of 2024, matching last year’s peak. This marks the
second consecutive year of record-high launches, signaling developers’ strong confidence in the market. Over the past year,
transaction advisors have noted a surge in demand from both investors and end-users, driven by rising incomes and strong
equity market valuations. A significant portion of this growing wealth is being invested in homes from branded developers in
prime city locations.

As we move into 2025, this momentum will sustain, propelled by a growing demand for better lifestyles and rising disposable
incomes. Developers are rolling out innovative product offerings, flexible payment plans, and community-oriented amenities to
meet the evolving preferences of homebuyers, ensuring quick sales of new properties.

11
Shifting preferences and growing share
of high-end apartments
Consumer preferences are shifting towards a more luxurious lifestyle, as evidenced by the growing market share of
high-end and luxury apartments in overall launches. This segment, previously the smallest with a 15%-18% share, now
commands 41% of the market share in 2024, up from 37% the previous year. This growth is also fueled by strong
participation from Non-Resident Indians (NRIs), drawn by India’s favorable economic outlook.

As speculation around potential interest rate cuts continues, demand in the affordable-mid segment is expected to rise, but
the high-end market remains less affected by interest rate fluctuations.

Demand for high-end apartments to

stay strong
The 2024 highlights a 12.8% rise in both the wealth and population of High-Net-Worth Individuals (HNWIs) in India during
2023. As the country cements its position as the world’s fastest-growing economy, incomes are projected to climb sharply,
approaching upper middle-income levels within the next five years (as per IMF forecasts in a World Bank study). This
economic shift is set to drive stronger demand for premium residential real estate, reflecting a growing preference for
high-quality living.

The strong performance of the US economy has strengthened the USD, making the depreciating rupee an attractive
opportunity for NRIs to invest in Indian assets, including residential real estate. With no immediate signs of rupee
appreciation, demand in the residential market, especially for high-end apartments, is expected to remain strong.

Market is swiftly moving towards

becoming corporatized or organized
14,000

12,000
9%

10,000
-5%

8,000
13%
Revenue (INR Cr)

6,000
42% 2019-20
7%
2020-21
4,000 35%
2021-22

2,000 2022-23

2023-24
0
Godrej Microtech DLF Brigade Oberoi Reality Prestige Estate
Properties Developers Enterprises

12
The residential real estate market has seen a remarkable recovery, with sales for major listed developers surpassing
pre-Covid levels from FY 2019-20. Revenues for FY 2023-24 have already exceeded those of previous years, signalling a shift
toward more organized and reliable developers. While listed developers continue to grow their market share, unlisted
developers with strong local brand recognition are also contributing to greater transparency in the market.

Leading developers set for strong

growth in 2025
India’s residential real estate market is expected to maintain strong momentum in 2025, driven by the stellar performance
of key developers:

1. Godrej Properties
Is on track to exceed its pre-sales target for FY2025, raising its goal to INR 30,000 Crore from INR 25,000 Crore,
reflecting strong market demand.

2. Macrotech Developers
They achieved pre-sales of INR 4,290 Crore during a traditionally slow period, reaffirming its ambitious FY2025
target of INR 17,500 Crore.

3. DLF
It remains confident in reaching its pre-sales target of INR 17,000-18,000 Crore despite a slower-than-expected
Q2 FY2024 performance.

4. Oberoi Realty
They are set for growth, driven by rising demand and a strong brand presence in premium locations, particularly in
the luxury segment.

5. Prestige Estates
It plans to launch residential projects worth INR 52,000 Crore by March 2025, which could significantly boost its
earnings and market presence.

6. Brigade Enterprises
Is targeting a 13% annual growth in housing sales, supported by its diverse portfolio of projects.

With strong pre-bookings, rising demand, and a shift toward more organized real estate, India’s residential market is
poised for continued growth in 2025.

13
City Wise Data

Launches Sales
2019 22,905 42, 828

2020 9,824 21,234

2021 20,585 35,073

2022 63,233 58,460

Delhi-NCR
62,649 60,000 Launches Sales
2023
2019 5,654 11,266
2024 60,699 57,654
2020 4,148 8,912

Kolkata 2021 7,510 14,405

2022 12,330 12,909

Launches Sales 2023 15,730 14,999

2019 11,487 16,713
2024 16,718 17,389
2020 7,372 6,506 Ahmedabad
2021 14,648 8,911

2022 20,809 14,062

2023 22,497 16,113

2024 22,043 18,462

Launches Sales
2019 13,495 16,267

2020 12,826 10,042

2021 35,736 24,318

2022 43,847 31,046

Hyderabad
2023 46,985 32,880
Launches Sales
2019 82,211 60,943 2024 44,013 36,974

2020 50,303 48,688 Mumbai

-MMR
2021 70,023 62,989
Launches Sales

2022 90,434 85,169 2019 33,772 48,076

2023 93,051 86,871 2020 19,929 23,579

2024 96,470 96,187 Bengaluru 2021 38,441 38,030

2022 43,420 53,363

2023 46,985 54,046
Launches Sales
2024 56,014 55,362
2019 44,660 32,809

2020 34,992 26,919

Pune Launches Sales
2021 40,489 37,218 11,487
2019 16,713

2022 38,640 43,410

Chennai 2020 7,372 6,506

2023 42,437 49,266 14,648

2021 8,911

2024 59,548 52,346 2022 20,809 14,062

2023 22,497 16,113

2024 17,431 16,238

14
City Wise Data

Ahmedabad
Location
Average Price
INR/ sq. m 33,336
Chandkheda
INR/sq. ft. 3,097
27,900-36,900
(2,600-3,430)

Motera
37,600-45,200
(3,500-4,200) Aslali Circle
Nikol 18,300-21,530
(1,700-2,000)
28,000-35,500
(2,600-3,300) Vatwa
Vastral 19,380-24,760
Navrangpura 25,800-31,200 (1,800-2,300)

55,400-65,600 (2,400-2,900)
(5,150-6,100) Bopal
Ambavadi 35,500-44,100
(3,300-4,100)
64,000-69,800
(5,950-6,490)
Prahlad Nagar
East North 59,200-61,300
Sou (5,500-5,700)
al th
entr
C

ro Market
W
c
es

Mi
t

15
City Wise Data

Bengaluru
Hebbal
67,813-1,39,931
(6,300-13,000) Sarjapur Road
Yelahanka 53,820-1,18,403
Location (5,000-11,000)
49,514-86,111
Average Price
(4,600-8,000) Kanakpura Road
INR/ sq. m 71,256
Thanisandra 45,208-94,722
INR/sq. ft. 6,620
(4,200-8,800)
55,972-1,17,327
KR Puram
(5,200-10,900) Electronic City
55,972-96,875
Hennur 53,820-80,729
(5,200-9,000)
(5,000-7,500)
62,431-1,11,945
Whitefield
(5,800-10,400) Bannerghatta Road
64,583-1,18,403
64,583-91,493
(6,000-11,000)
(6,000-8,500)
Langford Town Marathahalli Yeshwantpur
1,61,459-2,36,806 51,667-99,028 78,576-1,33,472
(15,000-22,000) (4,800-9,200) (7,300-12,400)

Lavelle Road Malleswaram

2,26,042-3,22,917 88,264-1,75,452
(21,000-30,000) (8,200-16,300)

Rajajinager
East North 89,340-1,94,127
(8,300-18,100)
al
entr Tumkur Road
C So

ro Market
ut 39,826-78,576
h

Mic (3,700-7,300)
W
es
t

16
City Wise Data

Chennai
Location
Average Price
INR/ sq. m 51,726
INR/sq. ft. 4,806

Kolathur
66,737- 77,501 Perumbakkam
(6,200-7,200) 57,049- 58,847
(5,300-5,467)
Perambur
Anna Nagar 71,247- 77,684 Kelambakkam
1,41,310-1,50,158 (6,619-7,217) 54,283- 55,618
(13,128-13,950) (5,043-5,167)

Kilpauk
1,51,299- 1,68,758 Porur
(14,056-15,678)
64,530- 71,538
(5,995-6,646)

Mogappair
North 81,268- 86,790
Sou (7,550-8,063)
al th
ntr
Ce

Micro
Ma
W
es
t

r
ke
t

17
City Wise Data

Hyderabad
Location
Average Price
INR/ sq. m 64,301
INR/sq. ft. 5,974
Kompally
61,979-66,952
(5,758-6,220)

LB Nagar Sainikpuri
69,428-78,653 51,667-55,381 Rajendra Nagar
(6,450-7,307) (4,800-5,145) 74,810-85,132

Banjara Hills Nacharam (6,950-7,909)

1,55,002-1,72,439 63,508-66,737 Bandiaguda

(5,900-6,200)
(14,400-16,020) 83,841-94,605
(7,789-8,789)
Jubilee Hills
1,44,238-1,51,062 Kokapet
(13,400-14,034) 1,08,124-1,34,550
(10,045-12,500)

East North
Manikonda
al 91,494-99,244
entr
C So (8,500-9,220)
ut
h

Mic
ro
M
W
es
t
ar
ket

18
City Wise Data

Kolkata
Ballygunge
87,188-2,26,042
(8,100-21,000)

Madhyamgram Tollygunge
Location
55,972-1,61,459
27,986-43,056
Average Price (5,200-15,000)
(2,600-4,000)
INR/ sq. m 41,066
Behala
INR/sq. ft. 3,815 BT Road
36,597-51,667
32,292-45,208
(3,400-4,800)
(3,000-4,200)

Kankurgachi Narendrapur
Jessore Road
61,354-94,722 27,986-48,976
37,674-64,583
(5,700-8,800) (2,600-4,550)
(3,500-6,000)

Park Street Salt Lake

Rajarhat New Town
1,45,851-2,34,653 57,049-1,02,257
37,674-83,958
(13,550-21,800) (5,300-9,500)
(3,500-7,800)

Rawdon Street
1,15,174-2,27,118
(10,700-21,100)

East North

al
ntr
Micro
Ce Ra
jar

Ma
ha
t

r
ke

So
ut
t

19
City Wise Data

Mumbai-MMR
Location
Average Price
INR/ sq. m 89,091
INR/sq. ft. 8,277
Badlapur
51,495-54,886
Lower Parel (4,784-5,099)

3,62,370-3,99,807 Dombivali
Ghodbander RD
(33,665-37,143)
93,335-1,03,447
1,51,023-1,74,988
Worli (8,671-9,610)
(14,030-16,256)
7,55,127-9,81,967
(70,153-91,227) Naupada
Panvel 2,31,157-2,45,118
67,899-80,752 (21,475-22,772)
Mira Road
Ghatkopar (6,308-7,502)
1,25,907-1,39,566
2,28,391-2,40,037 Kharghar (11,697-12,966)
(21,218-22,300) 1,02,204-1,18,372
Virar
Mulund (9,495-10,997)
Andheri
71,624-82,813
2,38,202-2,47,421 Vashi 2,51,216-2,65,376
(6,654-7,693)
(22,129.5-22,986) 1,90,663-2,05,119 (23,338-24,654)
Powai (17,713-19,056)
Bandra (W)
3,05,730-3,37,236
Tardeo 7,83,608-8,88,482
(28,403-31,330)
6,59,812-8,79,247 (72,799-82,542)

(61,298-81,684)
Borivali
Navi Peripheral 2,68,492-2,90,440
Perip
l Mumbai Central her
ntra este al
(24,943-26,982)
W
Ce rbs Suburbs
bu Subu rn So Dahisar
ral Su rbs u
ent ai Mu th 1,56,046-1,68,376
C mb mb
u ai

Mic
(14,497-15,642)
M Th
an Goregaon

ro
e

2,36,641-2,65,230

M (21,984-24,640)
We urbs
ar

Su
ste
b
ket

rn

20
City Wise Data

Delhi-NCR
Location
Average Price
INR/ sq. m 54,530
INR/sq. ft. 5,066

Sector 82
34,445–38,750
(3,200–3,600)
Sector 1
34,606–48,438
Sector 88 (3,215–4,500)
33,368–36,597
Omicron 1
(3,100–3,400)
32,238–39,827
NH-24 Bypass (2,995–3,700)

Dwarka 31,754-37,135
75,347-1,23,785 (2,950-3,450)
(7,000-11,500)
Raj Nagar Extension Sector 77
Greater Kailash-II 57,049-86,111
31,754-39,504
(5,300-8,000)
2,47,570-3,98,264 (2,950-3,670)
(23,000-37,000) Sector 81
59,201-82,882
(5,500-7,700)
Sector 78
51,667-68,889
(4,800-6,400)

abad Ghaziabad
Farid Grea Sector 143
ter
No 46,285-58,125
lhi ida
De (4,300-5,400)
Gu
rg
ra
Mi
m

cr
No
o

ida
M
ark
et

21
City Wise Data

Pune
Location
Average Price
INR/ sq. m 51,426
INR/sq. ft. 4,776

Kharadi
91,289-1,16,380 Moshi
(8,481-10,812) 63,884-73,346
(5,935-6,814)
Wagholi Aundh
53,723-85,897 Chikhali
Koregaon Park 1,65,120-1,73,247
(4,991-7,980)
(15,340-16,095) 55,176-66,188
1,65,034-1,91,707
(15,332-17,810)
Dhanori Baner
(5,126-6,149)

72,011-89,675 Chakan
Kothrud 1,11,526-1,78,349
(6,690-8,331)
1,44,421-1,90,038 (10,361-16,569) 39,192-40,989
(13,417-17,655) Hadapsar Hinjewadi (3,641-3,808)

84,971-1,07,296 82,345-1,13,151
Erandwane Ambegaon
(7,894-9,968)
(7,650-10,512)
1,79,845-2,00,985 67,770-84,067
(16,708-18,672) Wakad (6,296-7,810)

Boat Club Road 87,027-1,09,965

Undri
(8,085-10,216)
2,09,209-2,23,956 57,727-69,256
(19,436-20,806)
(5,363-6,434)

Kondhwa
East 46,974-65,671
Wes
t (4,364-6,101)
al
ntr

Micro Market
Ce No
rth
So
ut
h

22
Next-Beyond
India’s population is projected to reach 1.7 billion by 2047, with nearly 51% residing in urban areas. This growth also presents
opportunities for rural and smaller towns to evolve into mini-urban hubs. The rising urban population will significantly
increase the demand for housing, especially in cities. To meet this demand, urban areas in India will require an estimated
230 mn. housing units by 2047. The focus of development is anticipated to shift towards integrated townships, mixed-use
housing projects, developments tied to economic activities, and self-sustaining mini-townships.

23
4. Commercial

India’s Office Space

Market stays Strong
in 2025, after a Record-
Breaking 2024.
Despite expected supply slowdown, strong
demand from GCCs and fresh leasing drives
office space market.
India’s office space market ended 2024 with a record-high Gross Leasing Volume (GLV) of 72 mn. sq. ft. and net
absorption of approximately 45 mn. sq. ft. Fresh leasing remains the dominant driver, contributing over 60% of the GLV,
while precommitments have surged as companies seek to secure premium spaces in advance.

However, supply fell short of expectations, with only around 50 mn. sq. ft. coming online in 2024, leading to a significant
decline in vacancy rates. While supply is projected to pick up in 2025, rising demand from Global Capability Centres
(GCCs) remains a key factor. GCCs now account for nearly 30% of the GLV, and their share is set to grow further as India
strengthens its position as a preferred destination for multinational corporations.

67.7

Office space
2019
43.5

2020
46.6

demand carries
19.9

50.4

over into 2025,

2021 21.6

72
33.7

keeping vacancy
2022

74.6
2023
41

rates in check. 2024

45-46
83-85

2025
74-76
42-43

0 20 40 60 80

Gross Leasing Value (mn. sq. ft.)

Gross Leasing Value and Net Absorption (2019-2025)
Net Absorption (mn. sq. ft.)

24
India’s office space market has been on an upward trajectory since 2022, consistently exceeding 70 mn. sq. ft. in Gross
Leasing Volume (GLV) across the top eight cities. In 2024, GLV is projected to reach an all-time high of 83-85 mn. sq. ft.,
surpassing the previous peak by 13% YoY. This surge is driven by strong demand from key sectors such as IT-BPM, BFSI,
Engineering & Manufacturing (E&M), and flex operators. As a result, net absorption closed the year at approximately 45 mn.
sq. ft. across the top eight cities, further solidifying India’s position as a leader in office leasing.

India’s performance in office leasing is now seen as a key driver in the global market, particularly given the challenges faced
by office markets in the USA and China. Within the Asia-Pacific region, India accounted for nearly 70% of net absorption in
2024. While forecasts for 2025 suggest a slight dip in GLV to around 74-76 mn. sq. ft., demand is expected to remain strong.
Multiple factors will continue to fuel the market, including the rise of Global Capability Centres (GCCs), the expansion of flex
operator spaces, the growth of unicorns, and a booming E&M sector. These trends indicate that India’s office market is poised
for sustained growth beyond 2024.

In 2025, the strong momentum in fresh leasing is expected to continue, supported by a steady influx of Grade-A office
spaces entering the market. With nearly 75% of the pre-committed spaces for 2025 located in prime sub-markets, these
high-demand areas are likely to experience lower vacancies, further driving demand for premium office environments.

Strong supply expected in 2025 with

slight increase in vacancy rates amid
continued demand
While the supply of Grade-A office spaces in 2024 fell short of projections-ending at approximately 50 mn. sq. ft. instead
of the anticipated 58 mn. sq. ft.-demand remained strong, creating an imbalance across sub-markets. Factors such as
national and state-level elections and new policy changes, including the partial denotification of SEZs, contributed to slower
project approvals and a tight supply of office space this year. However, robust demand drove vacancy rates down to around
17% by the end of 2024.

As we enter 2025, the office market is set to witness the completion of over 60 mn. sq. ft. of Grade-A office space. A
significant portion-more than 60%-is expected to be in prime sub-markets, which have seen consistently high demand in
recent years. While this increase in supply may push vacancy rates up by 90-95 basis points, strong ongoing demand is likely
to prevent a sharp rise. High-quality Grade-A+ properties in prime locations will continue to attract strong interest from
occupiers, driven by factors such as competition for top talent, improved work-life balance initiatives, and adherence to ESG
(Environmental, Social, and Governance) standards. These factors will ensure that prime sub-markets maintain
a tight supply.

GCC leasing to maintain upward trend in India

Global Capability Centres (GCCs) have become a key driver of office space absorption in India, and their influence is set to
grow further. In 2024, GCCs contributed around 30% to the total Gross Leasing Volume (GLV), surpassing their pre-COVID
share in 2019. India remains the top choice for GCCs, with multinational companies from the West and advanced Asia-Pacific
regions increasingly establishing or expanding operations. This growing footprint reflects global confidence in India’s talent
pool and business environment, signaling a long-term commitment to the Indian market.

While the overall GLV for office space in 2025 may be slightly lower than in 2024, GCCs are expected to account for around
35% of the GLV in the top eight cities, underscoring their continued expansion.

25
As leasing activity in top-grade office spaces gains momentum through 2024 and into 2025, rents in prime micro-markets
are likely to face upward pressure. A significant portion of the new supply expected in 2025 will be concentrated in these
key areas, indicating potential rent increases. However, the rise is expected to be moderate, as a steady stream of new supply
will help maintain a tenant-friendly market in the near term.

With talent emerging as a key factor in office location decisions, occupiers will prioritize markets that attract the right
workforce. Workplace strategies will increasingly focus on access to amenities and the ability to support work-life balance.

Next-Beyond
In 2024, 25.1 mn. sq. ft. of new office space was completed, reflecting a 39% YoY increase, while transactions in the top 8
cities totaled 34.7 mn. sq. ft., marking a 33% YoY growth.

To accommodate the expanding economic activity, services sector, and rising formal employment, an additional 1.7 bn. sq. ft.
of office space is projected to be needed by 2034, bringing the total capacity to 2. bn. sq. ft.

This growth could generate potential revenue of USD 125 billion by 2034. Looking ahead to 2047, as India’s economy is
expected to reach USD 36 trillion with 69% of the workforce formally employed, the demand for office space will surge,
potentially generating an output of USD 473 billion.

26
 Warehousing

City Wise Market Summary

Delhi-NCR
Year - 2024 mn. sq. m. mn. sq. ft.

Completions 0.5 5.6

Transactions 1.2 12.7

Kolkata
Average
Transacted Rent INR 944.9 INR 88
Year - 2024 mn. sq. m. mn. sq. ft.

Completions 0.03 0.3

Transactions 0.1 1.4

Average
Transacted Rent INR 441.6 INR 41

Ahmedabad
Year - 2024 mn. sq. m. mn. sq. ft.

Completions 0.26 2.8

Transactions 0.28 3.0

Average
Transacted Rent INR 470 INR 44

Hyderabad
Year - 2024 mn. sq. m. mn. sq. ft.

Completions 1.45 15.6

Transactions 0.96 10.3

Average
Transacted Rent INR 753 INR 70

Mumbai
-MMR
Year - 2024 mn. sq. m. mn. sq. ft.
Bengaluru
Completions 0.54 5.8
Year - 2024 mn. sq. m. mn. sq. ft.
Transactions 0.96 10.4

Average Completions 1.2 12.4

Transacted Rent INR 1270 INR 118
Transactions 1.7 18.1

Average
Transacted Rent INR 988.6 INR 91.8

Pune
Chennai
Year - 2024 mn. sq. m. mn. sq. ft.

0.53 5.7
Year - 2024 mn. sq. m. mn. sq. ft.
Completions

0.74 8 Completions 0.19 2.1

Transactions

Average Transactions 0.76 8.1

Transacted Rent INR 829 INR 77
Average
Transacted Rent INR 745 INR 69.2

27
5. DATA Centres

India’s Data Centre

Industry is set for
Continued Expansion
Increased capacity and critical infrastructure
investments position India for digital success.

India’s data centre capacity in the colocation space closed 2024 at nearly 230 MW (IT load), with a similar or higher addition
expected in 2025. While Mumbai remains the primary hub for capacity expansion, cities like Delhi-NCR, Kolkata, and Chennai
are also poised for significant growth.

India continues to be one of the most underpenetrated data centre markets, requiring an additional 1.7-3.6 GW of planned
capacity beyond the current pipeline to meet future demand. Three major undersea data cable projects landing in Mumbai
are set to be completed in 2025, further strengthening the city’s role as a key regional data centre hub. Given the critical role
of power in this expansion, the government’s ongoing investments in power generation will be crucial in sustaining the
sector’s growth.

Data Centre Capacity Soars in 2025, Setting the Stage for Continued Expansion

India’s data centre landscape is

witnessing rapid transformation, with
1500 250
colocation capacity across the top
seven cities reaching approximately
1200 200
1.46 GW by the end of 2025, following a
significant addition of 250 MW of IT
load this year. This marks the
1457
continuation of a five-year expansion
Annual Capacity addition (MW)

900 150
Installed Colo capacity (MW)

1207 trend, with total capacity having tripled

since 2020.
977
600 100
The surge in data consumption
719
continues to drive demand, pushing the
593
491 country’s digital infrastructure to scale
300 403 50
up at an unprecedented rate. This
ongoing expansion reflects India’s
0 0 growing role as a critical hub for data
2019 2020 2021 2022 2023 2024 2025F storage and processing, and the
Installed colo capacity (in MW) Annual capacity addition (MW) country is well-positioned to support
future demand well into 2026.

28
 PUNE
9%

CHENNAI MUMBAI The country is projected to need

an additional 1.7 to 3.6 GW of
15% 39% capacity over the next five years to
IT capacity addition in 2025

meet rising demand. With artificial

250 MW intelligence (AI) still to make its
full impact on data consumption,
the need for further expansion is
KOLKATA expected to intensify.

16%

DELHI NCR
21%

Expanding power capacity to support data

centre growth
India's data center ecosystem is closely tied to the expansion of its power generation capacity. As of FY2024-25, the
country's total power output is estimated to have grown beyond 457 GW, up from 416 GW in the previous fiscal year.

The government’s commitment to digital transformation has placed infrastructure development particularly in power and
data centres at the forefront of national priorities. Recent financial budgets have reinforced this focus, ensuring steady
investments in energy expansion. This sustained growth in power capacity is crucial as data centres evolve with cutting-edge,
AI-ready infrastructure, which will inevitably drive higher energy consumption. With demand rising, a robust power supply
will play a vital role in shaping India’s position as a data hub.

Next-Beyond
India’s data centre market added 71 MW of IT capacity in H1 2024, marking a 21% YoY growth, increasing total capacity
from 778 MW to 942 MW.

By 2026, India’s total live data centre capacity is projected to double to 1,645 MW, requiring an additional 10 mn.
sq. ft. of space. This rapid expansion in the data centre market is expected to attract investments totaling USD 5.7 billion,
driven by the increasing demand for digital infrastructure.

29
6. Retail

More Malls, More

Choices: How Retail
is Evolving in 2025
Retail momentum accelerates with premium
spaces and expanding regional markets.
Rising disposable incomes and a shift toward discretionary spending are driving strong growth in the retail sector, leading
to increased demand for high-quality retail spaces. However, supply constraints are limiting the market's expansion, with
2024 expected to see the slowest mall supply in recent history.

Despite this, 2025 is set to witness a revival in leasing activity, with over 8.0 mn. sq. ft. of Grade-A mall supply anticipated.
International brands are entering the market, and the growing shift towards "experiential retailing" is expected to drive malls
toward premiumization in the coming year. At the same time, Tier-II cities are becoming key targets for expansion, as many
domestic retailers look beyond major metros.

Another trend to watch is space optimization in malls, where the performance of traditional anchor tenants will increasingly
be compared to that of more profitable retail categories.

01

30
 Retail supply deficit of 2024 to
rebalance in 2025

9.0

8.06
8.0

7.0
6.38
Mall supply (mn. sq. ft.)

6.0
5.10
5.0

3.78
4.0

3.15
2.9
3.0

2.0

1.0

0.0
2019 2021 2022 2023 2024 2025F

Annual Mall Supply Trend (2019-2025) With Grade A Mall Share

In 2025, the supply of Grade-A retail spaces is set to experience a significant boost, following the supply constraints of the
previous year. Only about 3.0 mn. sq. ft. of new Grade-A malls were added in 2024, marking one of the lowest supply levels
in the past five years. This limited supply contributed to the tightening of vacancies in Grade-A malls, especially in A+ grade
assets, which saw vacancy rates as low as 3%-4%.

However, 2025 will bring relief to the market, with over 8.0 mn. sq. ft. of Grade-A mall space expected to become operational,
addressing the gap in high-quality retail space. This increase in supply comes at a time when demand remains strong, driven
by rising disposable incomes and the growing trend of discretionary spending. These factors are reshaping the retail
landscape, further fueling the demand for premium retail experiences.

31
Malls to capture larger leasing
market share than high streets in 2025
In 2024, high streets dominated the retail
leasing market, accounting for 68% of
2025F deals across major cities due to constrained
mall supply. However, 2025 is set to mark
a shift, with the addition of 8.0 mn. sq. ft. of
2024E
new Grade-A mall space reshaping
market dynamics.
2023
Projections suggest that malls will capture
nearly 60% of leasing activity this year, a
2022 significant rise from just 32% in 2024.
This shift is being driven by strong
macroeconomic trends, rising discretionary
2021 spending, and the rapid expansion of
organized retail. As consumer preferences
0.00 1.00 2.00 3.00 4.00 5.00 6.00
evolve, malls are increasingly becoming the
Mall Vs. Main Street Leasing (2021-2025f) preferred choice for a seamless and diverse
Gross Leasing Value (mn. sq. ft.) Net Absorption (mn. sq. ft.) shopping experience.
F - Forecast E - Estimate

Retail expansion in 2025: Premium spaces

and geographical diversification
As India solidifies its position as a prime retail destination, 2025 is a pivotal year for international brands looking to establish
a presence. These global retailers will likely adopt strategies designed for India's unique market, focusing on securing
locations in high-demand malls in key cities. The growth in disposable incomes, coupled with a shift towards premium
spending, makes India even more attractive for global players, who are focusing on securing high-end retail spaces. Notably,
the entry of renowned brands like Maison Margiela, Time Vallée, and Laura Mercier in 2024 is just the beginning of an
accelerating trend. This surge in global brand presence is expected to usher in a premiumization phase for India's retail
landscape in 2025.

At the same time, homegrown retailers are broadening their reach beyond metro cities, targeting Tier-II and III cities where
the rising middle class is eager for quality retail experiences. As fashion, electronics, and local food & beverage brands
extend their footprints, they are tapping into the growing aspiration of non-metro consumers, ensuring that the retail boom
stretches well beyond India’s top cities.

Malls to reassess space allocation to boost

returns and fulfil consumer expectations
As retailers expand aggressively and demand for premium retail spaces intensifies, malls could soon start rethinking space
allocation strategies to maximize returns and cater to shifting consumer preferences. One significant change could be
reassessment of underperforming categories. Malls are witnessing higher traction in categories such as F&B, FEC (family
entertainment centres) and premium fashion, while the traditional anchor tenant categories such as cinema haven’t been
performing well. By prioritizing high growth categories, malls are better equipped to meet the needs of both retailers and
consumers in a competitive leasing environment.

32
 Shopping Malls
Top Eight Indian Cities Host 271 Operational Malls as of 2022
The evolution of shopping malls in India has been significantly shaped by the growing interest from organized developers.
Between 2011 and 2017, the rise of neighborhood malls and small shopping centres attracted Grade B developers into
the sector. However, since 2018, the demand for high-quality malls, tailored to meet the needs of organized retailers,
has prompted Grade A developers to expand their footprint. Today, Grade A developers manage 45% of all operational
malls in the top seven cities, marking a shift towards a more sophisticated retail landscape.

Trends Post-COVID
Between 2021 and 2023, the sector experienced robust net absorption and supply, with similar trends anticipated over
the next two years upto 2026.

Shopping malls in tier 1 cities (mn sq. ft.)

New Development (mn sq. ft.)
Net Absorption (mn sq. ft.)

12 F - Forecast

10 9.9

8
mn. sq.ft.

5.9
6 5.4 6.3
5.3
5.5
4.8
4 3.7
2.8
3.8
1.9 2.6
2
2
1.4

Year 2019 2020 2021 2022 2023 2024 2025 (F)

Robust net absorption and supply expected in next 3 years New Supply (mn sq. ft.)
New Absorption (mn sq. ft.)
9.9

10.0 F -Forecast

9.0
8.0

3.5 2.8
mn. sq. ft. mn. sq. ft.
8.0
6.3

9M 2023 9M 2023
6.5

7.0
Retail Supply Net Absorption
5.9
5.5
5.4

6.0
5.3
4.9
4.8

4.8

5.4 4.8
5.0
4.3

mn. sq. ft. mn. sq. ft.

4.1

3.8

3.7
3.5

4.0 2023 Projected 2023 projected

3.3

3.2

Retail Supply Net Absorption

2.8
2.7

2.6

3.0
3.5
2.0
1.9

2.8

2.0
1.4

23.82
mn. sq. ft.
1.0
2024-26
Retail Supply

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025F 2026F

From 2024 to 2026, it is anticipated that retail developments amounting to 23.82 mn. sq. ft. will commence operations across the top seven cities in India

33
Projected Shopping
Mall Supply (2024-2026)

6%
Kolkata 5%
Pune

8%
Mumbai
31%
Delhi NCR

• Total: 23.82 mn. sq. ft.

• Delhi NCR is anticipated to Shopping

15%
Mall Supply:
lead in shopping mall supply 23.82 mn. sq. ft..
(2024-2026)
over the next three years Bengaluru

15%
Chennai
20%
Hyderabad

Categorization of Shopping Centres by Grade

Criteria Grade A Grade B Grade C

Size Category (GLA sq. ft.) >500,000 sq. ft. 100,000-500,000 sq. ft. < 100,000 sq. ft.

Vacancy 0-9% 10-40% More than 40%

Department Store/ Department Store or

Anchor Tenants No anchor tenants
Hypermarket/ Gourmet Store Hypermarket

Floor-wise Zoning of Brands Strict Implementation Part Implementation No Implementation

Frontage and Visibility Excellent Good Poor

Mall Management Excellent Good Poor

Limited or no parking facilities

Parking Facilities 300 vehicles and above 200-300 vehicles
in the area

Direct and easy access from Easy access from all modes Weak access from all modes
Quality of Public Transportation all modes of public transport like of public transport like cabs, of public transport like cabs,
cabs, buses and metro stations buses and metro stations buses and metro stations

Shopping centres are classified into three main grade categories (Grade A, Grade B, and Grade C) based on various factors
including asset size, vacancy rates, anchor tenant profiles, zoning, mall management, parking facilities, and the quality of
public transportation.

34
Modern Retail Arena
Stock Comparison

Mall supply distribution by grade

Grade A Grade B Grade C

50% 50% 50%

45% 5% 45% 5% 45% 5%

40% 10% 40% 10% 40% 10%

Before Between After

2010 2011-2017 2018

35% 15% 35% 15% 35% 15%

30% 20% 30% 20% 30% 20%

25% 25% 25%

39% 27% 34% 38% 37% 25% 45% 29% 26%

Shopping Malls Gross Leasable Area (mn. sq. ft.)

31.3 16.3
NCR
NCR Mumbai
Mumbai

15.6 8.2 7.5

Pune
Pune Chennai Chennai
6.7
Hyderabad
Bengaluru
Bengaluru

5.5 3.2
Ahmedabad
Kolkata

35
Grade-wise
Vacany-Tier 1 Cities
50.0%

40.0%
Vacancy % in 2022 Vacancy % in 2023 36.5%

30 29.0% 33.5%

30.0%
25
22.2%
21.2%
20 19.5%
Vacancy %

17.4% 20.0% 16.1%

15.6% 16.1% 19.1% 14.8%
14.3%
15
Vacancy % in 2022
13.6% 10.4% 14.0% Vacancy % in 2023

12.4%
10 11.7%
10.0%
9.9%
7.8% 4.1%
5
4.2%

0.0%
Grade A Grade B Grade C
Ahmedabad Bengaluru Chennai Hyderabad Kolkata Mumbai NCR Pune
City Grade wise comparison of vacancy rates

Vacancy Rates According to Grade

The vacancy rate remains a crucial measure of the health of shopping centres, reflecting the impact of past retail development
practices. Unplanned construction during the early stages of retail growth has left its mark on mall health across all grades,
regardless of city tier. Though limited in number, Grade A properties maintain a strong position, with a vacancy rate of just 5.1%
across 29 cities. On the other hand, Grade C properties struggle with a high vacancy rate of 36.2%, largely due to the prevalence
of strata-sold properties. Cities with a higher concentration of Grade A malls or a smaller overall base tend to experience lower
vacancy rates, further highlighting the divide between quality and underperforming assets in the sector.

Evolution of Shopping
Centre Stock in Tier 2 cities

Gross Leasable Area in

No. of Cities Name
mn. sq. m. (mn. sq. ft.)

Up to 0.1 mn sq. m. Aurangabad, Bhopal, Bhubaneswar, Chandigarh,

16 Coimbatore, Guwahati, Hubli-Dharwad, Jalandhar,
(Up to 1.1 mn sq. ft.)
Ludhiana, Mangaluru, Nagpur, Raipur, Surat,
Va- dodara, Vijayawada, Visakhapatnam

0.1-0.2 mn sq. m.
04 Indore, Jaipur, Kochi, Kozhikode
(1.1-2.2 mn sq. ft.)

Above 0.2 mn sq. m.

01 Lucknow
(Above 2.2 mn sq. ft.)

36
The growth trajectory of shopping centres in Tier 2 cities has followed a distinct path compared to their Tier 1 counterparts.
While Tier 1 cities embraced organized retail development as early as the 1990s, the wave of shopping centre construction in
Tier 2 cities gained momentum around the turn of the millennium. This delayed entry into the retail landscape has resulted
in smaller-sized shopping centres dominating Tier 2 markets, reflecting their unique developmental timeline and local
demand dynamics.

Grade Wise
Stock Analysis

5.4
mn. sq. m. 3.7
mn. sq. m.
2.5
mn. sq. m.
82 shopping centres 126 shopping centres 132 shopping centres

Grade C
Grade B

Grade A

6
Lucknow 2.1

Shopping Malls
5 Gross Leasable Area
(mn. sq. ft.)
Ahmedabad 3.2

4
Kochi 2.3

3
Bhubaneswar 1.6
Jaipur 2.1

Kozhikode 1.7
Indore 2

Mangaluru 1.4
Vadodara 1.5

Coimbatore 1.3
Chandigarh 1.1

Vijayawada 1.1
Nagpur 1.3

Visakhapatnam 0.6
Bhopal 1.3

Hubli-Dharwad 0.6
Surat 1.3

2
Raipur 1.2

Aurangabad 0.7
Guwahati 1
Jalandhar 0.5

Ludhiana 0.3

Source: Knight Frank - Think India Think Retail

Tier 2 Cities

37
Next-Beyond
Despite the rapid expansion of e-commerce, the development of retail real estate is anticipated to continue growing across
all segments. It is estimated that an additional 41 mn. sq. ft. of retail space will become operational by 2028. This growth
presents substantial opportunities for shopping centre developers and retailers to enhance their market presence.

Shopping centres in Tier 1 cities are expected to retain their dominance, while early entrants in Tier 2 cities could gain a
significant competitive advantage. High streets are likely to prosper due to their established legacy, with categories such as
apparel, accessories, electronics, home and lifestyle contributing to higher revenue generation per square meter.

Despite inflation, consumer spending and retail sales are set to grow 5% and 9% YoY by 2024, driving a 7% YoY rise in retail
leasing to 3.1 mn. sq. ft. in H1 2024. Bengaluru, Chennai, and Delhi-NCR led, accounting for 59% of total absorption.

By 2047, with the Indian economy projected to reach $36 trillion, retail consumption is anticipated to account for 37% of
total private consumption. This substantial rise in consumption is expected to encourage the entry and growth of retailers
within India. It will also drive demand for retail real estate in shopping malls and high streets, establishing them as vital hubs
for retail expansion and consumer interaction.

E - Estimate

2047E 37.0%

2030E 16.0%

Share of organised
Year

2023 4.6% retail in total private

consumption of
the households
2016 1.3%

0 5% 10% 15% 20% 25% 30% 35% 40%

Percentage Share

150 Forecast of Organized Retail Sales Volume

136
Projections for Organized 125

Retail Sales Volume

Organized Retail Sales (USD bn)

100
Future forecasts suggest strong growth in
organized retail sales, with an anticipated
compound annual growth rate (CAGR) of 17% 75
%
17

from FY 2022 to 2028. Shifting consumer

R-
AG
rC
a

spending habits and rising disposable incomes

ye

62
6

are major factors transforming India's retail 50

52
market, fueling the demand for modern retail
24
R-
G
CA

formats and increasing the attractiveness of

ar
ye
5

shopping malls as top retail destinations. 25

18

FY 2017 FY 2022 FY 2023 FY 2028 F

F - Forecast

38
7. Warehousing

Logistics & Industrial

Leasing is set to cross
50 million square feet
The sector's growth remains strong in 2025,
fueled by engineering, retail and 3PL demand.

The Logistics & Industrial space will maintain a robust performance in 2025, with annual leasing volumes surpassing 50 mn.
sq. ft. for the third consecutive year. This growth is primarily driven by the expanding engineering and manufacturing sectors,
as well as the surge in e-commerce and retail activities, all of which continue to fuel demand for industrial spaces. Despite
the strong leasing activity, rental rates have remained largely stable, with only a few key clusters experiencing slight
increases due to heightened demand.

In 2025, alternative Logistics & Industrial clusters will emerge as prime locations become more expensive due to rising land
prices. As a result, new Grade-A warehousing developments, totalling around 25 mn. sq. ft., are expected to materialize in
cities across the West and South over the next 2-3 years, providing further impetus to the market and maintaining its growth
trajectory in the medium term.

39
Leasing activity in 2025 projected to surpass
50 million square feet amid steady demand
Warehousing Industrial Expected

2024 39.03 12.44

2023 37.67 15.9

2022 31 11.5 10.5

0 10 20 30 40 50 60

Logistics & Industrial Volume mn. sq. ft. 2022 - 2024

Logistics & Industrial real estate leasing volume for 2024 is closed in the range of 50-53 mn. sq. ft., making it the third
consecutive year of 50+ mn. sq. ft. of leasing volume. Ever since the Production-Linked Incentive (PLI) scheme was introduced
by the government in 2020, the industrial leasing volume witnessed healthy growth. Besides, the strong emergence of retail
and e-commerce has led to intense activity in the warehousing space too.

For 2025, we foresee the new-normal level of demand to sustain given the widening of the consumption base in India
alongside robust industrial activity witnessed in recent years. India is also a beneficiary of the China+1 diversification
strategy followed by global manufacturing firms.

Continued growth in Logistics & Industrial

demand driven by key sectors in 2025
3% The rapid expansion of the engineering &
9%
manufacturing (E&M) sector, along with
6% the continued strength of 3PL operators
Engineering And and the retail industry, has fueled demand
Manufacturing
30% for logistics and industrial space in recent
3PL 9% years. This momentum will persist in 2025,
Retail with these sectors remaining the key
growth drivers. Cities like Pune,
Automobile 14%
Chennai, and Bengaluru have witnessed
E-commerce strong leasing activity, and the positive
Fmcg 29% market sentiment is likely to extend to
other regions as well, reinforcing the
Others
sector’s long-term growth trajectory.

40
New additions & net absorption in India

50
49.8 46-49
45-48

40 41.7 38-42
41.4
40.7 37-41
39.4
mn. sq. ft.

36.4
30 31.0
31.8
27.0

20 20.8
19.7 22.2

10

2017 2018 2019 2020 2021 2022 2023 2024

New Addition Net Absorption

41
Potential Warehousing Transaction
Volume in 2047E (mn sq. ft.)
Volume of warehousing transactions in India

120

111

Next-Beyond
100

80
72 Growth and Revenue Potential
in India's Warehousing Market
mn. sq. ft.

60
Fueled by the strong link between economic growth, rising
income levels, and increased discretionary spending on
40 retail, India's warehousing sector is projected to witness an
annual demand of 111 mn. sq. ft. by 2034. A significant rise
from the current annual leasing volume of around 65 mn.
20
14 sq. ft. Over the next decade, the sector is poised to generate
revenues amounting to USD 8.9 billion

2017 2023 2034 E

E -Estimate

By 2047, India’s warehousing market is expected to witness a potential demand of 159 mn. sq. ft., with an annual compound
growth rate of 4%. The sector is forecasted to produce an output equivalent to USD 34 billion by that time. Emerging trends
suggest that the adoption of advanced technologies will be pivotal in driving the growth of India’s warehousing sector.
Innovations such as automation, robotics, artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) are
already playing a significant role in advancing the sector’s capabilities.

159 mn. sq. ft.

111
mn. sq. ft.

14
mn. sq. ft.

2017 2034 2047

42
8. PropTech in India
PropTech 1.0: The first movers of tech adoption in real channels. Real Estate distribution networks are on digital
estate in 2000s riding on the back of dot.com boom, rise of channels for project sales with increased velocity.
personal computers and real estate boom. Enterprise resource planning software's are laced with
advanced data analytics tools and marketplaces for supply
The first wave of property technology emerged in the 2000s
chain conversion. The most significant change is enabling
and was characterised by the growth of online property
transparency of transactions through data analytics and
listing websites. Then, the use of personal computers for
blockchain technology. Land records, property transactions
real estate purposes was on the rise and the establishment
and consumer profiles can be now vetted and validated with
of property analytics was considered the new promising
records stored on a blockchain. There is a paradigm shift
venture. Real estate agencies started to adopt the online
seen in property financing with regulated play of fractional
approach driving significant changes in the industry.
ownership that will go on to decrease the real estate
It translated to increased efficiency, a major shift in how
investment size, increase the velocity of property financing
owners commoditised their assets, and luring greater
and provide access to better quality real estate assets for
market share for early adopters.
investments. As we stand in 2024, on the cusp of another
PropTech 2.0: The Internet penetration and digital adoption revolution backed by generative Al, Language learning
in the decade of 2010 saw multitude of PropTech startups models and deep tech. Technology is bringing change to
coming to the fore across construction marketplace, this sector, not in years, quarters, or months, but by the day.
shared spaces, digital marketing, CRM, furniture rentals The behaviour of enterprises, consumer and the real estate
and others. asset is set to undergo a massive change as we move ahead
in this decade. Only those who can adopt and change will be
• The second wave of property technology was marked by able to build and unlock value in this drastically
the influx of online marketing. Listing moved to marketing, transforming and exponentially increasing India Real
with real estate brands wanting to market themselves on Estate Sector.
digital media talking directly to their consumers. The
popularity of technology innovations that offered more
customer-experience focused solutions were on the rise
with real estate marketplaces and customer relationship
management software gaining momentum. With
institutional capital pouring into the real estate sectors,
enterprise resource planning software saw increased
adoption among real estate developers. Building modelling
and construction planning software were ubiquitous.
Property management also underwent a transformation
with proliferation of Building management systems and
Internet of Things.

PropTech 3.0: The advent of AI at the start of the 2020s has

placed it at a pivotal point in its disruption journey, with the
emergence of generative AI and the Metaverse.

• The present decade marks the largest wave of tech-led

innovation in the real estate sector. Real estate enterprises
are omnipresent on digital media for brand communication
and product sales across Tier I, II, and III cities. From listing
and marketing, technology has now enabled the online
fulfillment of real estate transactions. Chatbots, generative
Al and Machine Learning defined enhanced consumer
interface and interaction across all communication

43
India’s PropTech Ecosystem
Tailwinds
Opportunities in The Rental Real Estate Segment
The PropTech sector in India is experiencing unprecedented growth, driven by
macroeconomic andtechnological factors. Key trends influencing this sector include
Urbanization and Demand forAffordable Housing: sector. These policies make it easier for PropTech
Rapid urbanization in India is increasing the demand for companies to expand operations and collaborate with
rental solutions, including student housing co-living and traditional real estate stakeholders who are now required to
family rentals. Rising property prices and cost of living are be digitally enabled by regulation.
pushing consumers towards rental options over ownership,
Growing Consumer Expectations for Digital-First
driving growth in PropTech solutions that help consumers
Solutions:
identify rental properties with affordability, flexibility, and
As consumers increasingly expect digital-first solutions
convenience.
across sectors, real estate is no exception. There is rising
Shift to Digital Transactions in Real Estate: demand for seamless digital experiences in property
The real estate market has traditionally been fragmented search, rental management, sales, and customer service,
and opaque, but digital transformation is creating pushing PropTech firms to adopt advanced technologies
transparency and reducing friction in transactions. like Al, machine learning, and blockchain.
PropTech solutions facilitate digital leasing, virtual tours,
These macro trends present substantial opportunities for
and online property management, which cater to
growth, efficiency, and innovation within India's PropTech
tech-savvy customers and reduce the time, effort, and costs
market, enabling companies in the PropTech space to
associated with traditional real estate processes.
deliver products, platforms and solutions that address
Investment in Alternative Assets: both consumer demands and industry challenges
Real estate is becoming an increasingly popular investment
choice, and SM-REITs offer an easy way to get involved in
real estate and digital lending. These funds give both retail
and institutional investors a simple, safe, and clear option to
invest in real estate without owning property directly.

Regulatory Support for PropTech Innovations:

Government policies such as Digital India and reforms like
RERA (Real Estate Regulatory Authority) are fostering
transparency and encouraging innovation in the real estate

44
Opportunities In
The Rental Real Estate Segment
India’s rental market presents vast opportunities driven by unmet demand across student, young professional, and family
rental segments. Current supply shortages and an increasing need for organized rental housing solutions offer significant
growth potential for PropTech companies focused on rental solutions.

Segments
Students: With approximately 40 Young Professionals: Around 60 Households: Urban households
lakh non-domicile students in urban lakh young professionals working in increasingly seek rental
areas needing accommodation, urban centres across various accommodations, with an estimated
there is a large gap in organized sectors also require shared demand from 1 crore households.
student housing. The current accommodations. Despite the The supply of organized rental
organized supply is less than demand, the organized supply of listings is significantly low, with less
3 lakh units, resulting in a shared accommodations for this than 1 lakh units in this category. The
major supply-demand imbalance, demographic is under 4 lakh units, demand is particularly high in urban
especially in high-demand cities notably in cities like NCR, Mumbai regions such as NCR, MMR,
such as Bengaluru, Pune, Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, and
Chennai,and the National Capital Bengaluru, Chennai, Hyderabad, Pune, highlighting the need for
Region (NCR). and Pune. scalable and organized solutions.

45
Residential Rental Market Size
There is a demand for rental housing in urban areas from non domicile citizens
constituting of students, young professionals and young families.

Student Housing in India Young Professionals Housing

Demand Demand

1.7 Crore students 1.6 Crore workforce

enrolled for higher employed in 9
education in urban areas corporate sectors

80 lakh non domicile students 60 lakh non domicile millennial

enrolled for higher workforce in urban areas
education in urban areas

60 lakh non domicile students

40 lakh non domicile live in
live in PG and rented
shared rented accommodation
private housing

Top Cities by demand Top Cities by demand

Bengaluru| Pune | Chennai | Kota | NCR NCR I MMR I Bengaluru I Hyderabad I Chennai I Pune

Supply < 3 lakh units organized Supply < 4 lakh units

student housing organized co living

Family Rental Housing

Demand

10 Crore households
live in urban areas

2.7 Crore households

live in urban rented
accommodation

1 Crore households
live in urban private
rented accommodation

Top Cities by demand

NCR I MMR I Bengaluru I Hyderabad I Chennai I Pune

Supply < 1 lakh units

organized rental listings

46
Rental Market Potential

The combined demand for rental units across student, evolving urban population. This opportunity in the rental
young professional, and family rentals stands at 2 crores, segment underscores the potential for growth and
while the organized supply is only 8 lakh units. This transformation, positioning PropTech solutions to deliver
imbalance indicates a 25x opportunity to bridge the gap in better living standards, streamlined rental experiences,
demand and supply. PropTech can play a crucial role in and operational efficiencies across the Indian rental
organizing the rental market through technology-enabled housing market.
platforms that offer improved discovery, quality of living,
The estimated size of India’s urban rental market is
and ease of rental management. By addressing this supply
USD 50 billion across student living, co living and
gap, PropTech companies can provide high-quality,
family rentals.
technology-driven solutions to meet the demands of an

47
Opportunities In The Real Estate
Distribution Segment

India’s real estate distribution segment is poised for significant transformation,

presenting strategic opportunities for stakeholders to leverage the convergence of
institutional supply channels and digital demand.

Market Size
The Distribution opportunity aims to bridge the demand and supply gap in housing sales market
with AI & Data science enabled sales and marketing solutions.

Supply side Transactions Evolving Market Dynamics

18,000+ 4,82,000 • Growing demand for luxury housing

Live Housing Projects New Homes Sold • Preference for Grade-A and branded players
• Growing dependency on digital marketing
11,000+ ~₹4,00,000
Active Developers Crore worth value • Tier 2 and Tier 3 cities expansion
of homes sold • Developers going pan India
10,40,000+ • Digitization of Channel Partner community
Unsold Inventory

Adoption of Technology in sales

and marketing efforts of developers
RE marketing expenditure is a must to succeed in the dynamic
housing market.

Data Analytics
₹3000 Crores Awareness Discovery Engagement Transaction Handover
Social Media

₹4,000 crores Marketing Automation Newspaper Digital Pre-Sales teams Customer

Real estate ₹ 1,000 Crores Radio Brokers
Channels Influencers Direct Sales team Relationship
marketing Digital Classifieds Hoarding Social media Channel Sales team Management
Events
expenditure

Sales Automation
₹ 34,000 Crores
Brokers and Mortgage

48
Key areas within the segment where technology and
innovative practices can unlock value include

01
Demand Aggregation
& Digital Fulfilment
• Omnichannel Demand Capture:
03
Enhanced Customer
Experience through
Technology
Reaching diverse buyers through
multiple platforms. • Virtual Tours and Online Transactions:
Meeting expectations with immersive
• Efficient Lead Management: digital experiences.
Aggregated data enables targeted • Integrated Journey Solutions:
marketing and improves conversion rates. Simplifying the purchase process from
search to after-sales.

02
Channel Partner
Ecosystem Digitization
• Centralized Portals: Real-time access
04
Data-Driven Insights
and Analytics
• Market and Buyer Insights: Understanding
to project details and analytics. preferences and demographics for better
strategies.
• Automated Compliance: Streamlining
interactions between developers and • Performance Monitoring: Real-time
partners, ensuring regulatory adherence. tracking to optimize outcomes.

• CRM and Relationship: Management

optimization, advanced CRM systems
enhance customer engagement and
retention.

• Automated Engagement: Keeping

potential buyers engaged with
personalized follow-ups.

49
Distribution Market Drivers

Several drivers shape these opportunities, including the growing demand for efficiency, the
shift toward customer-centric models, increased institutional participation, and rising digital
adoption. Enhanced digital tools, data-driven insights, and improved customer experiences
are set to drive sustainable growth, efficiency, and transparency in India’s real estate
distribution segment.

50
Opportunities In The Real Estate
Capital Segment
India's real estate capital segment is at a pivotal moment, with PropTech innovations reshaping investment dynamics and
creating strategic opportunities for stakeholders. The space provides an opportunity for players with institutional cadence
and a strong governance practice to become leaders in this transformative landscape, providing investors with tech-driven,
transparent, and efficient investment solutions. This section explores key opportunities within the capital segment for
leveraging technology and regulatory support to enhance investment potential and market efficiency.
Technology adoption in real estate capital financing aims to empower investors through its tech-driven investment platforms
that ensure transparency, convenience and compliance.

Investor Community Investment Vehicles Investment Opportunities

13,200+ 9.3 Crore Units

Ultra rich Indians Housing Demand by 2036

REITs SM-REITs
2,400+ 70 Crore sq. ft.
Wealth Managers Grade a Office Stock in 2023

900+ 11,000+
Institutional investors AIFs PMS Active Developers in 2023

200+ Mutual Funds & 32.8 Crore sq. ft.

Family Offices others SM-REIT able Office Space

A series of disruptive regulations Land Acquisition Act | RERA ~₹ 80,000+ Crore Total
and reforms paved the way for | REITs | SM REITs | IBC | investments per year into
rapid transformation and GST | Infrastructure status India’s Real Estate sector
participation of institutional to affordable housing over last 3 years
investors, family offices and
HNIs in India’s property sector

51
 Market Opportunity Strategic
Landscape Opportunities
• Residential Demand: 9.3 crore housing units Technology-driven investment platforms are
projected by 2036. revolutionizing real estate by introducing

• Commercial Real Estate: 70 crore sq. ft. • AI-Enabled Platforms: Facilitating data analysis and
of Grade A office space available as of 2023. personalized investmentstrategies.

• Developer Ecosystem: Over 11,000 active developers • Automated Due Diligence: Reducing the time and
contributing to the growing supply. cost of vetting investments.

• SM-REIT Potential: 32.8 Crore sq. ft. of SM- REIT- • Digital Lending Solutions: Offering quick access to
eligible office space, highlighting the scope for capital for investors and developers.
structured investment products.
• Real-Time Portfolio Monitoring: Allowing investors
• Investment Volume: Real estate attracts over to track and manage their portfolios efficiently.
₹80,000 Crore in annual investments, showcasing
its economic significance.

Democratization of Innovation in Financial

Real Estate Investment Products
• Creating Accessible Entry Points: Lowering New investment products are broadening options
minimum investment requirements through for real estate investors, including
fractional ownership.
• SM-REITs: Allowing investments in smaller
• Offering Transparent Tracking: Digital platforms commercial properties.
provide clear visibility into investment performance.
• Alternative Investment Vehicles: Catering to niche
• Developing Digital-First Products: Meeting the investor needs.
demand of tech-savvy, younger investors interested
in real estate. • Consumer Financing: Offering innovative
mortgage and lending solutions for homebuyers.

• Digital Lending Platforms: Streamlining financing

for developers and buyers.

Technology Market Drivers and

Integration Future Outlook
PropTech solutions enhance efficiency, transparency, Key drivers of growth in the capital
and access in real estate investments by segment include

• AI-Powered Analysis: Improving decision-making with • Efficiency Demand: Investors seek streamlined,
predictive analytics. transparent processes.

• Data-Driven Insights: Providing real-time data for • Customer-Centric Shift: Technology boosts
informed strategies. investor confidence and engagement.

• Automated Compliance: Simplifying regulatory • Institutional Capital Growth: Increased

adherence. participation of institutions seeking stable returns.

• Digital Documentation: Facilitating transactions • Digital Adoption: Rising digital tools adoption
through digital contracts. integrates PropTech into the market.

52
9. Policy Overview

Details of policy initiatives, status and impact post 2024

Policy Initiative About Status Impact on Real Estate Secter

Data Centre Proposed in 2020 to Various incentives are Government support has
Policy set guidelines and offered, such as increased demand for data
operational standards infrastructure support centress, indirectly driving
for data centress, and benefits for the need for alternative real
including authorization companies developing estate options.
and regulatory advanced AI & ML data
measures. centress.

Infrastructure Infrastructure status Reduced borrowing Supports urban homeless

Status to granted to affordable rates and enhanced by facilitating access to
Affordable housing to enable capital flow have made affordable housing with
Housing access to benefits like financing affordable basic amenities.
lower borrowing costs housing projects easier.
and tax exemptions.

Digital India Aimed at creating a 95.56% of land Digitized land records

Land Records modern, transparent, records and 95.73% enhance transparency,
Modernization and comprehensive of Sub-Registrar unique property IDs,
Program system for land records. Offices are and streamlined
(DILRMP), 2016 computerized; 60% property registration
of cadastral maps processes.
are digitized.

Goods & GST replaced multiple GST rates: 1% for Increased cost
Services Tax indirect taxes, such as affordable housing, transparency in
(GST), 2017 VAT and service tax, 5% for construction and service
impacting under-construction taxes, improving
construction-related non-affordable efficiency and reducing
services. housing, and none for hidden costs.
ready-to-move
properties.

53
Policy Initiative About Status Impact on Real Estate Secter

Special Window Fund established Delivered over Boosted liquidity for

for Affordable to complete 28,000 homes and developers and offered
and Mid-Income stalled housing unlocked liquidity more options for
Housing projects in exceeding homebuyers in the real
Investment Fund stressed markets. ₹35,000 Crore. estate market.
(SWAMIH), 2019

Jawaharlal Focused on enhancing Provided financial Improved urban

Nehru National urban infrastructure assistance of ₹17,900 infrastructure, enhanced
Urban Renewal and promoting Crore, with 348 out of city attractiveness
Mission accountability of local 1,507 approved for investments, and
(JNNURM), 2005 authorities. projects completed. addressed slum
development.

FDI in Allowed 100% FDI in Over $33.91 bn. of Infused global capital
Construction, the construction FDI inflows and expertise into
2005 development sector recorded between construction,
under specific 2000 and March promoting growth and
conditions. 2024. technological
advancements.

National Logistics Aimed at boosting Infrastructure Stimulated growth

Policy (NLP), economic growth by improvements in commercial real
2022 enhancing supply reduced transit estate, such as
chain efficiency and times and logistics warehouses and
competitiveness. costs. industrial parks.

Special Economic SEZs aim to promote 272 SEZs are Increased demand
Zones (SEZ) economic activity operational across for industrial and
Policy, 2001 through foreign India, with ₹6.56 commercial real
investment and fiscal lakh crore in estate, property
incentives in investments and value appreciation,
designated regions. employment for and infrastructure
over 20 lakh growth.
individuals

54
10 Future Outlook
The real estate sector stands at a critical crossroads, shaped by shifting market trends, technological innovation, and a
growing emphasis on sustainability. In the residential space, while affordability remains a challenge, smart housing
solutions and government incentives present significant growth opportunities. On the commercial side, hybrid work models
and a demand for sustainable office spaces are reshaping the landscape, while retail real estate evolves with a focus on
mixed-use developments and experiential offerings.

The integration of technology and sustainability is proving transformative, with PropTech advancements and green-certified
buildings taking center stage. As emerging markets in India and Southeast Asia experience rapid growth, developed regions
are focusing on adaptive reuse and technological innovation to stay competitive.

For stakeholders, the path forward requires a commitment to sustainability, embracing technological solutions, diversifying
investments, and fostering collaboration between the public and private sectors. By aligning with these priorities, the real
estate industry can unlock its full potential, contributing to economic growth, social inclusion, and environmental progress.

55
References
• https://www.jll.co.in/en/trends-and-insights/research/india-real-estate-market-report
• https://www.jll.co.in/en/trends-and-insights/research/future-of-logistics-warehousing-market-india
• https://www.jll.co.in/en/trends-and-insights/research/data-center-outlook
• https://www.knightfrank.co.in/research/think-india-think-retail-2024-11173.aspx
• https://www.knightfrank.co.in/research/india-real-estate-a-decade-from-now-2024-11102.aspx
• https://www.knightfrank.co.in/research/india-real-estate-office-and-residential-market-jan-mar-2024-11093.aspx
• https://www.knightfrank.co.in/research/india-real-estate-residential-and-office-market-h2-2023-10856.aspx
• https://www.knightfrank.co.in/research/india-real-estate-office-and-residential-market-jul-sep-2023-10611.aspx
• https://www.knightfrank.com/research/report-library/india-real-estate-vision-2047-2023-10502.aspx
• https://www.knightfrank.be/research/india-real-estate-residential-and-office-market-h1-2024-11307.aspx
• https://www.knightfrank.com/research/report-library/india-real-estate-office-and-residential-market-h2-2024-11800.aspx
• https://www.knightfrank.be/research/india-real-estate-office-and-residential-market-jul-sep-2024-11576.aspx
• https://www.cushmanwakefield.com/en/india/insights/india-office-outlook
• https://www.colliers.com/en-in/research/investment-snapshot-q3-2024
• https://www.vestian.com/market-report/reits-reshaping-indias-commercial-space
• https://www.vestian.com/market-report/institutional-investment-in-indian-real-estate-q3-2024
• https://www.vestian.com/market-report/warehousing-and-logistics-sector-review-h1-2024
• https://anarock.com/insights/research-reports/Annual-Residential-Report-2024
• https://www.colliers.com/en-in/research/india-real-estate-riding-stronger-in-2025

PropTech Pulse
We are dedicated to providing precise and insightful market trends to help you make well-informed decisions in the
real estate sector. With a focus on innovation and data-driven strategies, we offer a comprehensive view of the
ever-evolving real estate landscape. Our expertise empowers you to stay ahead of the competition and navigate the
market with confidence.

What We Offer:
Reels

Newsletters
12:00

Blogs
Infographics

12th Feb 2025 4 Min Read

Mumbai’s Real Estate Market in 2024: 22nd Jan 2025

Technology and innovation
The Rise of Affordable Homes and 4 Min Read

Changing Buyer Preferences How Technology is Changing Real

Estate in 2025 and Beyond

9th Jan 2025

Luxury Housing | From Bungalows Top CRM Solutions for PropTech

to Community Living

View More

Subscribe Today

56
Email Id: [email protected] Website: www.aurumproptech.in Contact: +91 2269111800
Address: Aurum Q1, Aurum Q Parć, Thane Belapur Road, Navi Mumbai 400710, India

Disclaimer: This report is for informational purposes only and is not for public distribution. It must not be reproduced or shared. The opinions expressed are based on information available at the time and
may not be verified independently. While efforts are made to ensure accuracy, the company assumes no responsibility for errors or omissions. Recipients should rely on their own judgment and relevant
sources before making any decisions. The report should not be used as a basis for any claim, demand, or action.